List Of Places Where Rent For Tenants Dropped

According to HassConsult, house prices dropped by the biggest margin in the quarter to December in over four years amid an oversupply of homes and costly bank loans.

The price of an average house within the city fell 2.2 percent during the period, marking the first contraction since June 2020 at the peak of the Covid-19 economic crisis.

The fall reverses a gradual increase in home prices, which started in September 2020 following the recovery of the real estate market, which saw home costs in the year to June rise at the fastest pace in 11 years.

HassConsult has attributed the fall to the rising interest rates that deterred prospective buyers and sky-high inflation in the Western world that depressed demand from Kenyans in the diaspora.

Some areas where rent on apartments dropped were Athi River by 2.8 percent and Ngong by 0.2 percent compared to the third quarter of 2022, Juja, Kiserian, Kitengela, and Limuru.

High-end estates such as Spring Valley, Westlands, Loresho, Runda, and Lavington recorded the largest drop in home prices, during the quarter. Prices in the neighborhoods, which host top executives, diplomats, and business people, shrank by between 3.6 percent and 5.9 percent.

Donholm, Langata, and Kilimani bucked the trend to record marginal increases in home prices. Sakina Hassanali, head of development consulting and research at HassConsult says increased supply, costly credit, and inflationary pressures have hurt home sales.

“There were a lot of inflationary measures put in place in the last year globally and locally that are affecting people’s ability to purchase real estate. This has seen developers not being so aggressive with their pricing,” she said.

“A lot of construction work was happening and increased supply of real estate and that means people are adjusting prices in areas with a lot of development and that’s what is affecting the price stagnation.”

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